A Study on Estimation of Volatility of Nifty-50 Index Using GARCH Model

Financial markets of every country through its stock exchanges depict the health of the concerned economy. In the stock market a good understanding of volatility is a pre-requisite for the risk-return trade-off. Volatility is considered as an important factor to predict time series data. In India BSE and NSE are the two prime exchanges, which give platform to companies to list their share and invite investors to trade on them. The current study endeavors to understand the volatility pattern of Nifty-50 (Index of NSE) by using Generalized Autoregressive Conditional Heteroskedasticity (GARCH) Model for the period of April 01, 2014 to March31,2019. The GARCH (1, 1) Model demonstrated its fitness towards predicting Nifty-50 volatility estimation with the least possible errors